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Offshore Software Development – What are the key trends in 2022?

Author: Innotech Vietnam
Date: 05/04/2022

Offshore software development is constantly changing. Since the offshore model gained prominence in the early 2000s, it has changed several worldwide sectors. The adoption of hiring an offshore team has led to an increased demand for cutting-edge skills. The following are some offshore software development trends to monitor in future years. 


Sourcing Of Capabilities 


As predicted, some associations are still pursuing offshore development chances as a means of significantly reducing expenses and effectively landing roles supplied at a higher cost. This is heinous and does more harm than good for the firm. 

Fortunately, observation and inspiration are evolving, and this trend is certain to continue. In 2022, other companies will research remote capability acquisition and expansion in a variety of countries. 

The term “Blended Workforce” is likely to become typical among high-growth firms as they seek to enhance their existing group with specialized skills and elusive abilities that may assist their internal workforce to be more profitable. 

As capability becomes increasingly scarce, global demand will grow. This trend, along with political instability that makes it more difficult to hire foreign personnel, will increasingly drive firms to look outside for talent. 


mixed workforce - offshore software development


The Establishment Of New Offshore Software Development Sites 


India is currently the world’s most popular outsourcing destination. Indeed, 80% of the world’s largest companies have created specialized teams in the nation, owing to a variety of advantages, including cheap operational expenses, flexibility, an appealing array of IT policies, great service quality, and technology availability. 

However, as demand for qualified technology employees increases, more firms are relocating to new offshore sites in Eastern Europe, North America, and Asia. 

For example, the Philippines, which is well-known for its business process outsourcing (BPO) services, is likely to become a popular destination for offshore. 

Despite the epidemic, the year 2021 witnessed massive expenditures in the technology sector, particularly in Europe. Eastern European countries such as Ukraine, Poland, Belarus, and Romania are also establishing themselves as favored nearshoring locations for Western European enterprises. 

With a minor time difference and cultural compatibility, businesses are embracing the nearshoring strategy to save money and gain access to talent that is not available locally. 


Improving Data Security 


Despite the fact that an increasing number of firms are establishing internationally scattered teams, one fundamental issue about outsourcing remains data security. 

Years of substandard outsourcing and overblown horror stories about offshore security breaches have caused organizations to doubt the protection of their intellectual property and private data while working with a remote workforce. 

Offshoring, some organizations believe, exposes them to the danger of data theft and compromises their trade secrets. As a result, cybersecurity for remote teams will be one of the most significant IT outsourcing developments in 2022. 


For instance, in 2020, the DSCI (Data Security Council India) Annual Information Security Summit addressed several vital topics, including the national cybersecurity policy, end-to-end encryption, data-driven organizations, critical infrastructure protection, and cyber insurance. 

On the other side, organizations are educating themselves on the essential cybersecurity frameworks they must apply to prevent security risks and safeguard sensitive data, regardless of the location of their staff.


data security - offshore software


Expanded Usage Of Collaborative Tools


Over the last few years, collaboration technologies have aided numerous teams in achieving common goals. And, as internationally scattered teams become more prevalent, one emerging trend in IT outsourcing is the use of digital solutions to connect local and offshore employees. 

Utilizing current collaboration technologies alleviates concerns about misunderstanding, time management, and cost for firms that collaborate with an offshore crew. 


When To Outsource Development To An Offshore Software Development Firm 


When Companies Want To Reduce Liabilities


Typically, a software development process demands a lot of time and resources. It also requires full attention and focuses on the core objective, from the inception phase to when the final product has been deployed. To maintain these, companies need to have a dedicated team to handle the task and acquire the tools necessary for development. These time and monetary obligations can be expensive for businesses, especially for small and medium-sized companies trying to minimize liabilities and maximize the efficient use of available resources. 


When Companies Have A Tight Budget


For small and medium-sized businesses, hiring in-house software engineers is expensive. The recurrent cost of hiring a permanent software developer can strain the business’s budget while limiting efforts aimed at minimizing costs. 

Offshore development offers a cheaper alternative, providing an opportunity to work with talented software engineers on the project while staying within the budget. 


When Companies Want To Speed Up Development Time

Reducing time to market is critical in today’s world, where competition demands leveraging opportunities immediately when they emerge. In-house development requires commencing the hiring process for software developers and rigorous research on the best tools for development. Without technical knowledge, this can take a lot of time and subject the development process to compromised quality. 


When Companies Want To Utilize The Top Resources And Technologies


The technology landscape is developing quite rapidly with technologies such as artificial intelligence, blockchain, natural language processing, and many more changing how industries operate. For developers, multiple resources also exist in offshore software development, which enhances the developing experience and their ability to create powerful software that leverages disruptive technologies. 


When Companies Have Diminished Quality And Innovation


Quality and innovation should be at the core of company operations. They provide clients with value for their money, position the business ahead of the competition and allow the business to win the market. If companies notice the product’s and service’s quality and the standard of innovation are diminishing, that is the best time to consider bringing offshore software developers on board. 


When Companies Are In Need Of The Uttermost Flexibility


Companies often work with offshore software development teams on a contractual basis. This makes more sense compared to hiring a full-time software developer for a short-term project. With offshore developers, the obligation to them ends once they have completed the project. 


When Not To Outsource Development To An Offshore Software Development Firm 


offshore team


The factors mentioned above will help signal the need to outsource. However, sometimes it makes more sense not to outsource. That includes: 


When Companies Have Expert Competencies


If companies have in-house knowledge, skills, and resources to execute proper software development that matches the required innovation and quality standards, it is not advisable to outsource. 


When The Cost Obligations Are Too Steep For Offshore Software Development


In most instances, outsourcing is a cheaper option for businesses and brands. However, if the cost implications exceed the budget limits, companies should explore other affordable alternatives or suspend development while sourcing the required resources. 


When The Risk Is Too High


The challenges of managing an offshore development team elevate the risk of missing the target. If the engagement with an offshore team creates the risk of failing to meet the desired objectives, it is best to seek another alternative that grants more control over the project. 


What services can be outsourced?


Outsourcing gives companies a range of indisputable benefits, including pricing flexibility, a large talent pool, scalability, and so on. There is a vast of tech-related services that can be outsourced: mobile development services, web development, UI/UX design, etc. 


  • Mobile app development: 


With a mobile app outsourced, companies don’t need to hire an in-house team, pay fees and sick days, or office rent. The offshore software development team will build a cutting-edge solution without any extra expenses for equipment and working space. 


  • Web development services: 


It provides businesses with a leg up over the competition with a flawless web product. This product will boost the company’s online presence, as the outsourced team would do their best for flexible and modern website development in the shortest time.


  • UX/UI design:


Skilled designers will make all the complex designs amazingly simple. As a result of cooperation, companies will obtain an intuitive app interface or site that is easy to navigate. Moreover, companies will be able to focus on other essential business issues entrusting outsourced design creation. 


offshore software development


  • QA services:


Developing software solutions needs thorough testing of every app part to ensure it works without bugs. Even the best offshore software programmers can make mistakes, but they’ll soon be tired, obliged to write test cases and check each product’s detail. In this case, outsourcing is an excellent approach to maintain the solutions at their best without exhausting in-house devs. 




By staying current on shifting IT outsourcing trends, firms can guarantee they have the appropriate ingredients for success regardless of the circumstances. This article provides some offshore software development trends in 2022 to help companies stay up to date.  

At Innotech Vietnam, we maintain a team of Vietnamese IT specialists who can manage small to large teams and coordinate with clients regardless of where they may be situated. As one of the leading firms in outsourcing software development in Vietnam, we are confident to provide the highest quality, the most trustworthy service, and the fastest time-to-market products to our clients. 

Don’t hesitate to contact our team of experts if you have any queries or concerns about offshore software development and we’ll be more than pleased to assist you. 


We’re here to help and answer any question you might have. We look forward to hearing from you.